IREL (India) Ltd., the government-owned Miniratna PSU responsible for rare-earth extraction, has operated without a full-time Chairperson and Managing Director (CMD) since December 2024. This leadership vacuum comes at a time of escalating global supply disruptions and growing strategic urgency in rare-earth production and processing.
Leadership Void at Critical Time
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Chairperson/CMD Seat Vacant: Deependra Singh, who led the company for nearly a decade, stepped down in December 2024. The board has yet to appoint a successor from applicants invited in February, with interim finance director S. B. Mohanty currently filling in.
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Governance Concerns: Experts criticise delayed recruitment processes in CPSEs. “It sends a wrong signal that PSEs don’t have planned succession planning,” said Shriram Subramanian, MD of InGovern.
Supply-Side Crisis Under Pressure
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China’s Export Restrictions: Since April, China has tightened exports of key rare earths, including neodymium—essential for EV motors—heightening risks to domestic supply and industries like automobile manufacturing.
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IREL Under PMO/Bureaucratic Pressure: Indian authorities have reportedly urged IREL to halt rare-earth exports to Japan under a longstanding deal, prioritising domestic reserves to build supply resilience.
Operational Capacity & Strategic Initiatives
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Processing Constraints: IREL’s mining capacity outpaces its refining capabilities. In FY24, extraction rose 9.8%, while high-purity refining output dropped by 9% due to limited mid-stream demand and inventory management.
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Magnet and Alloy Production: The PSU has launched domestic production of samarium-cobalt magnets and other rare-earth metals (cerium, lanthanum), supporting future supply chains.
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Expansion and Partnerships: It plans to double neodymium output—from 450 MT in FY26 to 900 MT by 2030—and is pursuing new mines and refining partnerships.
Strategic & Economic Implications
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Economic Resilience: Without robust leadership, IREL’s ability to scale processing, secure partnerships, and execute expansion could be hampered.
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National Security Risks: Rare-earths are deemed critical minerals, vital to defence, energy transition, and high-tech manufacturing. Leadership lapses could impair strategic responsiveness.
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Global Market Positioning: India holds the world’s fifth-largest rare-earth reserves, but without leadership, it risks failing to capitalise on rising global demand and reducing Chinese dependency.
The absence of a full-time CMD at IREL during this supply-volatile period poses risks not just to corporate governance but to national strategic imperatives. Addressing this vacancy and reinforcing executive leadership at IREL will be essential for bolstering India’s rare-earth self-reliance and securing its place in the global critical minerals landscape.